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Biotech penny stocks have a lot to offer investors. While many biotechs start out unprofitable as they build a treatment and push it through FDA approval, these stocks can explode overnight when that much-anticipated approval comes or a clinical study proves the worth of a drug once and for all.

Of course, penny stocks by nature are aggressive, and biotech penny stocks are just as risky. That’s why I screen for stocks that trade for more than $1 but less than $5, with a $100 million market cap or greater and more than one year on a major exchange. No pink sheets or wild bets here. These are legit companies – that just so happen to be super small and in startup phases.

If you’re looking to play biotech penny stocks, consider these seven picks:

Acadia Pharmaceuticals

Focusing on treatments for central nervous system disorders, Acadia Pharmaceuticals (NASDAQ: ACAD) has experienced a 31% increase in stock value year-to-date. ACAD has more than doubled its 52-week low of 65 cents but, based on my fundamental and quatitative screens, remains an affordable stock for penny-stock investors, with more upside

AEterna Zentaris, Inc.

Oncology and endocrine therapy drug development company AEterna Zentaris, Inc. (NASDAQ: AEZS) is up 27% year-to-date and 81% in the last 12 months. Buy this stock as it approaches its 52-week high of $2.68.

Aastrom Biosciences, Inc.

Regenerative medicine company Aastrom Biosciences, Inc. (NASDAQ: ASTM) is up 20% in the last three months and 77% in the last 12. This penny stock just makes the cut with a market cap of $102 million, but it definitely is an investment to watch.

Cell Therapeutics, Inc.

Cancer treatment company Cell Therapeutics, Inc. (NASDAQ: CTIC) has jumped 50% since mid-March. This penny stock has the ability to bring you quick gains, as its value skyrocketed 37% in just one day in March.

iBio, Inc.

Focusing on vaccines and therapeutic proteins, iBio Inc. (AMEX: IBIO) is up 12% since the beginning of May. At the beginning of June, the company reported positive clinical trial results for an H1N1 influenza vaccine. If the vaccine proves effective against H1N1, IBIO stock may jump.

Pluristem Therapeutics, Inc.

One of the biggest gainers on this list is bio-therapeutic company Pluristem Therapeutics, Inc. (NASDAQ: PSTI), up 157% in the last 12 months and 108% year-to-date. PSTI has tripled its 52-week low of 98 cents.

YM BioSciences, Inc.

YM BioSciences (AMEX: YMI) is a biopharmaceutical company that focuses on cancer patients. YMI stock is up 16% year-to-date and 127% in the last 12 months. Buy this stock just under $3.

As of this writing, Louis Navellier did not own a position in any of the stocks named here.